Defence stocks in demand

Shares of six defence equipments makers rose by 2.48% to 8.05% at 13:09 IST on BSE on reports the Defence Acquisition Council approved proposals worth Rs 4444 crore on Wednesday, 17 December 2014.

Walchandnagar Industries (up 8.05%), Astra Microwave Products (up 6.69%), Bharat Electronics (up 4.69%), BEML (up 4.01%), Pipavav Defence & Offshore Engineering Company (up 3.76%) and Dynamatic Technologies (up 2.48%), edged higher.

The S&P BSE Sensex was up 384.32 points, or 1.44% at 27,094.45.

According to reports, the Defence Acquisition Council (DAC) approved proposals worth Rs 4444 crore, including the purchase of four helicopters for survey vessels at Rs 2324 crore, but deferrred a decision on a joint bid of Tata Sons and Airbus for replacing IAF's Avro transport fleet.

Besides giving its go-ahead to acquire four choppers, the DAC, under Defence Minister Manohar Parrikar, also cleared the upgradation of the mobile integrated electronic warfare system, Samyukta, at a cost of Rs 1682 crore, reports added.

The DAC also cleared a proposal relating to purchase of P-7 Heavy Drop Platform, which is used for military logistics, for Rs 402 crore, reports said.

Another proposal of Rs 36 crore for acquiring propeller engine for offshore patrol vessel of the Coast Guard was also reportedly given a go-ahead.

The government on 26 August 2014, notified increase in foreign direct investment (FDI) limit to 49% through approval route in the defence sector.

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